Numbers and Decimals: Understanding How Odds work and How to Use them in Your Favour
Sports betting is one of the best ways to stay entertained while enjoying your game of choice. With smartphones and the internet at our disposal, you can watch a Knicks game and have a running bet on the team at the same time.
But before you can actually tap into the wonders of sports bet on Betway, you have to understand how odds work, and in this article we will cover just that.
Fractional Odds
This type is very prevalent in the UK or when betting on horse racing. Basically, it shows the net profit relative to your stake. It is often displayed as 5/1 or 2/5, with the numerator pointing to the amount you stand to win and the denominator the amount you bet.
For example, a supporter using a reputable platform such as Betway might place a $10 bet on Manchester United to beat Arsenal. The potential return would depend on the odds available at the time, and the bet would only pay out if Manchester United won according to the terms of that market.
American Odds
Otherwise known as moneyline odds, American odds are structured around a $100 baseline. You will often see a positive or negative sign attached to the values. If you find a minus attached to a number, it denotes the favorites and highlights the exact figure you must wager to win $100 in profit. Simply put, -150 means staking $150 ensures you win $100.
On the flip side, a positive sign attached to the figure signals the underdog and denotes the profit gained from staking $100, meaning if the odds are +200, staking $100 wins you $200.
Decimal Odds
Decimal odds show the potential total return, including the original stake, if a bet is successful. For example, with decimal odds of 2.50, a $100 stake would have a potential total return of $250 if the selection won. That figure includes the original $100 stake, so the potential profit would be $150. The actual outcome still depends on whether the bet is successful.
How to Use These Odds to Your Favor
Now that you know how they work, let's see how you can use this to your advantage.
Line Shopping and Staking Models
Odds will often vary across different sportsbooks. To manoeuvre this, you will need to compare different values across different providers. To highlight how big an impact line shopping has, securing a line at 2.15 instead of 2.05 on the exact same event increases long-term profit margins by nearly 5% over time.
Calculating Fair Odds
Sportsbooks build a profit margin into every set of odds, popularly known as the "vig" or "overround." When seeking to work with the best odds and determine the true probability of an outcome, it is imperative that you strip out the vigorish by dividing each selection's implied probability by the total market percentage.
Conclusion
Understanding odds is an underrated step that most bettors skip and then pay heavily in the virtual realm. By having a firm grasp of American, decimal, and fractional odds, you stand a better chance of walking away a happy punter.
